Meet the Entrepreneurs
Microforester November 2013
Mobile Innovation
microforester
Working to reduce poverty and unemployment through the planting of trees
CONTACT INFORMATION Yerevan, Armenia
+374 93952555, +44 7453684782 sashakaryan@gmail.com
Alexander Shakaryan, founder, Armenia
CHALLENGE Over the last twenty years, Armenia has faced important challenges related to deforestation. Energy shortages were common during the cold winters of the 90’s, and coupled with high unemployment rates, they resulted in mass logging throughout the country as people used wood for heating without restrictions. Today, a series of reforestation projects are being implemented in the damaged areas of Armenia; however, they often suffer from insufficient transparency and elevated management costs. Other important challenges for rural areas include high unemployment and poverty in a context characterized by the lack of perspectives for local communities.
“I SAW MASSIVE DEFORESTATION AFTER THE COLLAPSE OF THE SOVIET UNION, WHERE PEOPLE USED WOOD FOR HEATING PURPOSES WITHOUT ANY RESTRICTIONS.”
IDEA
Microforester founder Alexander Shakaryan and his team came up with an idea at the 2012 m2Work Competition, where they discovered that mobile apps present a strong opportunity to improve the quality of life for underprivileged individuals. Their concept promotes forestation initiatives while generating income for impoverished communities. For a small fee, users remotely plant trees and check their growth through a mobile application. People from rural communities are responsible for planting the trees, caring for them, and reporting back to the users with photos and films sent through the app. The system is also expected to engage a wide range of stakeholders in the process, from environmental organizations and local NGOs to environmentally responsible companies and public institutions aiming to contribute to forestation.
“THE GOAL FOR MICROFORESTER IS TO BECOME A MODEL THAT CAN BE REPLICATED ANYWHERE IN THE DEVELOPING WORLD, BUT FIRST WE NEED TO PRESENT A PROTOTYPE WITH PROVEN RESULTS.”
BUSINESS MODEL Microforester aims to drive social and environmental impact while generating revenue for the business to be sustainable. The startup has developed substantially since the idea was born in 2012, although it had not yet been incorporated by the end of 2013. The application immediately generated interest in the sector and was awarded with a series of prizes such as m2Work in 2012 (1st prize), CDRF “From Idea to Market” (1st prize) or infoDev’s Global Forum 2013 in South Africa (one of the five winners). This allowed the startup to secure its first funding with a USD25,500 grant from CRDF and a USD8,000 prize from the infoDev Global Forum. The team also established a partnership with Instigate Mobile, a local company that specialized in mobile solutions, to improve the application and develop it for Android and Windows phones. The iOS version was in the final validation stage in November 2013 and was expected to launch in March 2014. Though Microforester’s main commercial target is private sector companies, the startup is also interested in developing collaborations with the public sector and individuals. Income will be generated by retaining a percentage from each project implemented. The project will also generate extra income for the locals in charge of tree planting and maintenance.
“MICROFORESTER IS FIRST SOCIAL, THEN ENVIRONMENTAL. AFTER THOSE TWO COMES THE BUSINESS.”
www.infodev.org
twitter: @infoDev
ENTREPRENEUR’S INSIGHTS • BUILD A STRONG AND DEDICATED TEAM: A cohesive team is a key success factor, especially during the early years. • LISTEN TO FEEDBACK AND LEARN FROM MISTAKES: Making mistakes is necessary to become an effective entrepreneur. The lessons learned help speed up the process. • LEVERAGE THE RESOURCES AROUND YOU: infoDev and mLab ECA were essential to Microforester’s success. It’s extremely important to take advantage of opportunities for support.
NEXT STEPS
WORKING WITH mLab ECA
Consolidate and register Microforester as a formal business entity Develop the app for Android and Windows phones by 2014 Officially launch the application in 9 districts of Armenia by the first semester of 2014 Attract environmentally sustainable companies aiming to dedicate funds to forestation Build partnerships with international development organizations and replicate the Microforester model across the world
• A PHYSICAL WORKSPACE where the team could develop innovative ideas. • HELP THE STARTUP TO EXPAND ITS NETWORK to include Armenian public partners, while providing the opportunity to promote the idea to different stakeholders at both national and international levels. • VALUABLE FEEDBACK TO IMPROVE THE TEAM’S WORK was provided during the m2Work Competition and the Global Forum 2013 organized by infoDev.
KEY OUTCOMES VALUE FOR USERS To enhance environmental impact: Microforester will work with local communities to reforest devastated areas in Armenia and build environmental awareness. To reduce unemployment and poverty: Through microwork, Microforester will create employment for low-income individuals and promote community solutions to local challenges. Promote sustainable practices in the private sector: Microforester will engage private sector organizations in addressing social and environmental challenges while contributing to the creation of an increased sense of responsibility.
BUSINESS FACTS TARGET CUSTOMERS
INVESTMENT SECURED TEAM MEMBERS
private sector companies with a Corporate Social Responsibility policy, public institutions, NGOs, and private persons.
TREE PLANTING PERMISSION OBTAINED
GRANTS AWARDED
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in 9 areas of Armenia USD25,500 - CRDF Global’s “From Idea to Market Competition” USD15,000 - Local government’s STEP competition
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USD8,000 - Dragon’s Den of infoDev’s Global Forum 2013
Supported by:
www.infodev.org
twitter: @infoDev